Bounce back loan

chez6911

Everyone who has managed to get the loan what's your plans with it in wondered if to pop it into a savings account for a yr get a bit of free cash from it 
Or instead of taking out a car loan for a company car to use it for that 

What's people's thoughts 

JakeMM

A large amount is being kept so as I have headroom. Knowing I’ve got a couple of months breathing space helps a lot.

But I’ll also be investing a fair amount in advertising and marketing when this all starts to lift.

The way I see it, is people either have money or they haven’t. Those with money won’t be in any rush to get back to work, and will probably wait until it picks up. They’ll enjoy a few extra days / weeks and won’t be so hungry.

Others will be desperate for money - they’ll be out working as soon as they can, but they’ll be cash poor.

If you can hit this early, and pour a lot of money into marketing - not many people will be doing the same. You stand an amazing chance to get a lot of work in a short space of time!

Jeremy535897

chez6911 said:

Everyone who has managed to get the loan what's your plans with it in wondered if to pop it into a savings account for a yr get a bit of free cash from it 
Or instead of taking out a car loan for a company car to use it for that 

What's people's thoughts 

Car loans are normally expensive. Interest receivable is tiny, and will probably be less than the interest you pay on the loan after year one.

davetheraver

chez6911 said:

Everyone who has managed to get the loan what's your plans with it in wondered if to pop it into a savings account for a yr get a bit of free cash from it 
Or instead of taking out a car loan for a company car to use it for that 

What's people's thoughts 

Are you serious? I thought the whole purpose of this loan scheme is to help businesses that are suffering and have been impacted from by Covid-19.

Wondering what to do with it, or thinking of buying a "company car" clearly shows you, and maybe at least 50% if not more, of the people who are applying for this bounce back loan, really do not need it.

The problem now is, anyone who has a dormant or not very active business can get access to money the business does not need. Who really thinks most of these loan applications are going to be used for business purposes? Most of these people are just seeing it as an easy cash gift, but what they are not forgetting is, it is repayable. I am sure a lot of business will be written off this due to people abusing this scheme, but I do not think it will be as easy as not paying it back. This is backed by the government, do you really think they will let millions of people not pay this back.

I spoke to the lending team at a bank yesterday, he said the banks do not care as its backed by the government and the person taking out the loan is responsible to pay it back. The government wont let you get away without paying it back, there will be repercussions.

So all these crooks who are taking advantage of the scheme, and blocking and slowing down applications for genuine businesses who really need it. Don't forget in 1 years time those repayments will need to be made, so be sure you put the money to good use and make it work and earn you money back. Buying cars and having a nice life etc will just get you in more debt, which will affect your credit rating, bankrupt, ruin your business etc.

chez6911

I will be paying every penny back being trading for 35yrs and never borrow anything so don't tar me with the same brush I'm investing some into new stock as well 
It just leaves our own savings in the bank 
As the government we didn't ask but to me making money so I'm getting out off it what I can because I would be working and making money and wouldn't ask to borrow 

chez6911

And vehicle will be work purposes as I work call8ng on customers

Grumpy_chap

If it was always in the business plan to invest in a vehicle this year, then the business would be negligent to their shareholders if they did not secure that vehicle at the lowest cost and cheapest finance available.

The invest the loan option seems like too much hassle really given the low interest rates availble.

While probably not the intent of the scheme, a new vehicle supports the economy and, in a roundabout way, helps us all bounceback.
As for.

davetheraver said:

maybe at least 50% if not more, of the people who are applying for this bounce back loan, really do not need it.
Quite likely.  The trouble with simple schemes is they are hard to control.  BBLS was designed to be simple.

The problem now is, anyone who has a dormant or not very active business can get access to money the business does not need.
Not really - a dormant business would have no turnover history so the cap would mean they cannot borrow much.
The real fraud there seems to be is the high number of new sole-trader business that started on 28th February and all self-certify their predicted turnover at £200k to they get £50k.  This needs to be clamped down on imo.

t I do not think it will be as easy as not paying it back. This is backed by the government, do you really think they will let millions of people not pay this back.
The government wont let you get away without paying it back, there will be repercussions.

Agree and certainly hope so.  It is not clear how the Government underwriting will work, but there must be some consequences otherwise the Government might just as well give each and every one of us a cheque for £50k.

davetheraver

Ok well, now you have made it clearer it seems reasonable, but they way you said it at first ,was like you were going to do the same as I am sure most people will do, that are trying to get this loan.

And what about all the self employed people who have been using a personal account as a business account to "avoid fees" like lots of people on this forum have mentioned, and asking if they are entitled. Its funny how people want to go unnoticed to avoid paying as little out as possible regarding business costs and tax etc. Yet when this once in a lifetime opportunity is offered, they are all chomping at the bit to try and open business accounts to get some borrowing.

I am not saying its a fact, but if you are self employed, and avoiding business accounts cause of the fees, then a lot are most likely doing cash in hand jobs and paying as little tax, if any tax at all. You really think these people will be investing into their business?

chez6911

I've always paid taxes and vat on time bo7ght my shop yrs ago so no rent to pay employ 3 staff who's wages I've topped up from furlough so they arnt out off pocket I have a full business account proper accountant so I'm not sherking from anything 

Jeremy535897

Were you successful in getting a small business grant?

gwc1

davetheraver said:

chez6911 said:

Everyone who has managed to get the loan what's your plans with it in wondered if to pop it into a savings account for a yr get a bit of free cash from it 
Or instead of taking out a car loan for a company car to use it for that 

What's people's thoughts 

Are you serious? I thought the whole purpose of this loan scheme is to help businesses that are suffering and have been impacted from by Covid-19.

Wondering what to do with it, or thinking of buying a "company car" clearly shows you, and maybe at least 50% if not more, of the people who are applying for this bounce back loan, really do not need it.

The problem now is, anyone who has a dormant or not very active business can get access to money the business does not need. Who really thinks most of these loan applications are going to be used for business purposes? Most of these people are just seeing it as an easy cash gift, but what they are not forgetting is, it is repayable. I am sure a lot of business will be written off this due to people abusing this scheme, but I do not think it will be as easy as not paying it back. This is backed by the government, do you really think they will let millions of people not pay this back.

I spoke to the lending team at a bank yesterday, he said the banks do not care as its backed by the government and the person taking out the loan is responsible to pay it back. The government wont let you get away without paying it back, there will be repercussions.

So all these crooks who are taking advantage of the scheme, and blocking and slowing down applications for genuine businesses who really need it. Don't forget in 1 years time those repayments will need to be made, so be sure you put the money to good use and make it work and earn you money back. Buying cars and having a nice life etc will just get you in more debt, which will affect your credit rating, bankrupt, ruin your business etc.

That’s quite a first post!

Not one for sitting on the fence eh? 😂